FTS finds a way to finance modernization of oil products lines

Transeft and the government have come to a compromise to finance the modernization and expansion of oil products pipelines. The Federal Tariff Service (FTS) has proposed to allow Transneft invest money obtained from oil pumping in the renewal of the oil products lines system. The companies interested in expanding of the pipelines will negotiate with Transneft themselves. Thus, the pipeline monopoly can avoid the accusations of cross-subsidization.

FTS published the draft regulation of the government presupposing the inclusion of the expenditures for the development of the main oil products pipelines in the tariffs for Transneft’s services. It is said in the document that when the funds from oil products’ pumping are not enough, “the expenditures are taken into account when forming the tariffs for oil transportation services”. The scheme will be fulfilled on the basis of the governmental decisions or agreements with oil companies interested in the expanding of the facilities. The investments will be included in the oil-pumping tariff.